{"id":127395,"date":"2026-10-22T08:30:00","date_gmt":"2026-10-22T07:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127395"},"modified":"2026-10-22T01:08:56","modified_gmt":"2026-10-22T00:08:56","slug":"universal-credit-wont-follow-3-5-rise-2027","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/universal-credit-wont-follow-3-5-rise-2027\/","title":{"rendered":"Universal Credit Won\u2019t Follow 3.5% Rise in 2027 As Millions Face Different DWP Payment Rates"},"content":{"rendered":"\n

The difference follows the release of September’s inflation figures and legislation requiring an additional increase to Universal Credit payments. The announcement comes as Britain’s welfare spending<\/strong> faces renewed scrutiny, with expenditure excluding the state pension expected to reach \u00a3180.6 billion next year.<\/p>\n\n\n\n

Why Universal Credit Payments Will Rise Faster Than Other Benefits<\/strong><\/h2>\n\n\n\n

The Department for Work and Pensions (DWP) will increase several benefits by 3.5% in April 2027, reflecting the latest inflation rate. These include Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance and Carer’s Allowance.<\/p>\n\n\n\n

Universal Credit will follow a different arrangement. According to the Birmingham Mail<\/a>, its standard allowance is expected to rise by approximately 6.6% to 6.7%, combining the September Consumer Prices Index (CPI<\/strong>) inflation figure with an additional increase required by law.<\/p>\n\n\n\n

The Universal Credit Act 2025<\/a> requires the Secretary of State to raise the standard allowance by at least the September CPI rate, followed by a further amount. This means the increase will exceed the inflation-linked adjustments applied to other benefits.<\/p>\n\n\n\n

Baroness Sherlock previously addressed the government’s approach, stating: “The announced increase in the standard allowance will see an above inflation increase in every year from 2026\/27 to the end of Parliament.<\/em>“<\/p>\n\n\n\n

According to The Sun<\/a>, the additional increase is connected to government rules intended to gradually replace the \u00a320 weekly Universal Credit uplift introduced during the Covid <\/strong>pandemic and subsequently withdrawn.<\/p>\n\n\n\n

State pension recipients will also see a different increase. Payments are set to rise by 3.9% under the triple lock<\/strong>, as average earnings growth exceeded both the 3.5% inflation figure and the minimum 2.5% guarantee.<\/p>\n\n\n\n

The inflation announcement followed a rise in fuel costs. Office for National Statistics chief economist Grant Fitzner <\/strong>said inflation had reached its highest annual rate in almost a year, with diesel prices at their highest level since July 2022.<\/p>\n\n\n\n

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Universal Credit rates per month from end of first assessment period from 12 April adult rates up 6.7% (3.1% uplift then 3.5% CPI), child rates up 3.5%, LCW frozen and LCWRA may rise slightly. My calculations; announcement expected November
single <25 +\u00a322.71=\u00a3361.29
single >25\u2026<\/p>— Paul Lewis (@paullewismoney) October 21, 2026<\/a><\/blockquote>